Etinde decision beckons for BowLeven

The half-year operating loss was down by a quarter to $6.33m (£4.19m), although financial comparisons are largely immaterial at this stage of the group's evolution. However, BowLeven did take a number of strides towards monetisation, including confirmation that the IM-5 appraisal/development well (offshore Cameroon) contains sufficient gas/condensate volumes to supply a proposed fertilizer plant that is to be developed by European industrial group, Ferrostaal.

BowLeven's development of its Etinde Permit was given another effective vote of confidence in January, when it signed a $500m agreement with FTSE 100 energy services engineer, Petrofac (PFC), that will offset future exploration costs at Etinde in return for a proportion of cash flows. Ready access to Petrofac's technical expertise (and capital equipment) at a time of increasing demand within the oil services sector is another positive aspect of the deal. BowLeven is already awaiting approval of the Etinde Exploitation Authorisation Application from authorities in Cameroon, and is making progress towards obtaining a formal gas sales agreement with Ferrostaal. Once these measures are completed, and financing is put into place, BowLeven will be in a position to proceed to a final investment decision (FID) on Etinde - targeted for the second half of 2013.

Following the March volume upgrade of the Isogo field within Etinde, BoA/Merrill Lynch increased its risked core net asset value estimate by 15 per cent to 141p a share.